Sunday, August 17, 2008

Investing is similar to taste of Strong Wine

Many people like to ask, how much money should one invest into Stock Market is considered appropriate with good return? There’s no definite answer, to me, if one can afford to loss money in Stock Market and he can still enjoy the meal with good appetite, then it should be fine.

 Most of people enjoy drinking, not only one bottle, but kind of few bottles in one short. I don’t know how people really enjoy with this kind of bottom up drinking, but for sure, if buying Share with this kind of behavior, your pocket is going to bottom up! (Chinese say Gang Pei, let the glass empty)

 Actually, buying share is like tasting of X.O., little by little, with this slowness drinking, one can enjoy the process, taste it at least. Normally if drinking too much too fast, the only possibility is vomiting.

 

One should only invest with the money that intended to keep in Bank’s Fix Deposit account, say about 40% of net worth. Every month review the investment result before making any decision, in this case break your investment timing into separate portion, and don’t buy at one time. Again, look for long team… would like to use the investment Guru’s words, “Buy into the Company because you want to own it, not because you want the Stock to go up”. 

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